ISLAMABAD – In a bid to achieve the petroleum levy collection target of Rs1281 billion set for the ongoing fiscal year, the federal government is likely to enhance the levy to the maximum level. With the current pace of petroleum levy collection, the government will collect Rs1100 billion against the budget target of Rs1281 billion for the ongoing fiscal year 2024-25, official source told The Nation.
It is true that for the first time, the government has collected the highest levy in the first half of any financial year, the source said. The collection of petroleum levy has reached Rs549.41 billion from July to December 2024, the source maintained. On average, petroleum levy of Rs 91.57 billion per month was collected during the first six months, and if the trend continues the government can collect approximately Rs1100 billion during the entire year, the source explained. No doubt, the government is on its way to collect the highest petroleum levy in the country’s history during the ongoing financial year, however it is unlikely to meet the target of Rs 1281 billion, the source said. The petroleum levy collection has recorded an increase of Rs76.67 billion from July to December on an annual basis during 2024-25, the source said. The collection of petroleum levy from July to December of FY 2023-24 was Rs472.77 billion.
The target of collection of petroleum levy for the current financial year is set at Rs1281 billion. In the fiscal year 2023-24, the collection of petroleum levy was Rs 1019 billion, which was higher than the revised PL target of Rs960 billion. In the financial year 2022-23, the collection of petroleum levy was Rs580 billion. Currently, the government is charging a levy of Rs60 per liter on petrol and high speed diesel. To meet the petroleum levy collection target of Rs1281 billion during the FY2024-25, the government has raised the maximum petroleum levy from Rs60 per litre to Rs70 per litre in the finance bill of the ongoing fiscal year.
Now there are two possible ways to meet the PL target of the ongoing fiscal, either the sale of petroleum products goes up by at least 30 percent during the last half of the FY 2024-25, or the government jacks up petroleum levy on petrol and HSD to the maximum Rs70 per litre, the source argued.
